Rising interest rates slow housing market
Central Ohio home sales declined for the second straight month as rising interest rates continue to keep some potential buyers from making a move.
The average 30-year fixed rate for a mortgage currently exceeds five percent. It's the highest rate since 2009 and quite a change from the roughly three percent mark seen late last year. Rising interest rates, a lack of available homes, and years of underbuilding are taking a toll on the region according to Columbus Realtors.
“For every one percent increase in interest rates, your buying power decreases by about 10-11 percent," Columbus Realtors. President Sue Van Woerkom said. "And this is especially challenging for first-time home buyers,"
The average age of a first-time home buyer in central Ohio today is 31, and first timers purchase nearly 40 percent of the homes sold.
Sales declined 1.1 percent last month compared to April 2021. So far this year, only February saw an increase in home sales.
Prices continue to climb in central Ohio. Columbus Realtors says the region's median price so far this year of $270,419 marks a nearly 13 percent gain compared to the price of homes sold during the first four months of 2021.
The time it takes to sell a home continues its brisk pace. Homes spent an average of just 13 days on the market in April.